The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Carvana (CVNA) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Retail-Wholesale peers, we might be able to answer that question.
Carvana is a member of our Retail-Wholesale group, which includes 204 different companies and currently sits at #12 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Carvana is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CVNA's full-year earnings has moved 43.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, CVNA has returned 70.2% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of 4.5% on a year-to-date basis. This means that Carvana is outperforming the sector as a whole this year.
Dillard's (DDS) is another Retail-Wholesale stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6.9%.
For Dillard's, the consensus EPS estimate for the current year has increased 6.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Carvana belongs to the Internet - Commerce industry, a group that includes 36 individual companies and currently sits at #67 in the Zacks Industry Rank. Stocks in this group have gained about 8.2% so far this year, so CVNA is performing better this group in terms of year-to-date returns.
In contrast, Dillard's falls under the Retail - Regional Department Stores industry. Currently, this industry has 3 stocks and is ranked #36. Since the beginning of the year, the industry has moved -11.5%.
Investors with an interest in Retail-Wholesale stocks should continue to track Carvana and Dillard's. These stocks will be looking to continue their solid performance.
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Carvana Co. (CVNA): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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